increasing the money supply doesnt cause inflation when there is a proportional increase in the supply of goods and services.

yes it would b/c you will have to increase the amount of employees or hours to produce the additional goods/services especially now with companies having already cut their expenses to the bone. The result will be an overall increase in money into the economy resulting in inflation.

Those rules they give you in class are generally in a bubble dizzle, this is why you need real world experience in order to apply them correctly.

yes it would b/c you will have to increase the amount of employees or hours to produce the additional goods/services especially now with companies having already cut their expenses to the bone. The result will be an overall increase in money into the economy resulting in inflation.

Those rules they give you in class are generally in a bubble dizzle, this is why you need real world experience in order to apply them correctly.

i dont see how what you said in anyway contradicts the notion that increasing the supply of goods and services can balance out an increase in the money suppply to avoid inflation.

value of money is dependant on the ratio of money supply to supply of goods and services.

you have 1 dollar and 1 apple. dollar=apple. you have 1 dollar and 2 apples. 1/2dollar=apple. you have 2 dollars and 1 apple. dollar=1/2apple.